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Corporate Political Activity and Intra-African Foreign Direct Investments: Evidence from Uganda’s Electricity Industry

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Africa-to-Africa Internationalization

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Abstract

This chapter presents an exploratory investigation of emerging corporate political perspectives of intra-African foreign direct investment (FDI). Using an exploratory, qualitative, multi-case-study research approach, the investigation drew on evidence from Uganda’s pro-market reformed electricity industry. The methods of data collection were primarily semi-structured interviews and examination of archival materials, while data analysis was thematic. Some indications emerge of how investment patterns on the continent are increasingly being shaped by firms that heterogeneously deploy corporate political activity (CPA) strategies. The nature of the political capabilities associated with this heterogeneity suggests a growing consciousness by firms to better align their classical market strategies with non-market strategies. There is also an indication that a strategic accumulation of heterogeneous political capabilities by home-grown emerging market multinational enterprises (EMNEs) positions them to capture a bigger share of the African market in future and to drive intra-African FDI. Finally, there is some evidence of an emerging African interpretation of market capitalism that is rooted in the contingencies and the aspirations of the continent. All this bodes well for Africa as one of the final frontiers of large-scale FDI.

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Mbalyohere, C.G. (2016). Corporate Political Activity and Intra-African Foreign Direct Investments: Evidence from Uganda’s Electricity Industry. In: Adeleye, I., White, L., Boso, N. (eds) Africa-to-Africa Internationalization. AIB Sub-Saharan Africa (SSA) Series. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-30692-6_4

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